(NOTE: Children with a Child Trust Fund (CTF) cannot have a Junior ISA as well as a CTF unless the CTF is transferred to a Junior ISA with us. See ‘ISA Transfers’ below.)
Making regular savings in a Junior ISA is a fantastic way to put something aside for a child’s future. Safe in the knowledge that the ISA funds must go to the child.
You can save up to £9,000 a year tax-free, by either committing to regular monthly contributions (min £30 per month) or investing a lump sum (min £1,500) or a combination of both. Top ups of at least £500 are accepted in addition to regular monthly contributions.
Anyone, such as grandparents, uncles, aunts, Godparents or family friends can pay into a Junior ISA for a child as long as they have the parent(s) or guardian(s) consent. With a low start contribution of £30 per month, and the Metfriendly Escalator – an easy way to build up your savings with contributions automatically increasing each year, until you tell us to stop.
With annual bonuses and a potential final bonus after three complete tax years investment you’ll be providing an important financial boost to a child just when they may need it the most.
- premiums received during tax year 6th April 2020 – 5th April 2021 will receive a guaranteed annual bonus of 1.5% per annum for the first tax year of the plan
- with the annual bonus rate for every subsequent tax year set by the Board before the end of the calendar year
- the plan will be eligible, after three complete tax years, for a final bonus on encashment
- the savings can then be left to grow, or transferred, or withdrawn at any time after age 18
- one plan for all types of investment – monthly contributions, lump sums or a combination of both.
- you can vary your monthly contributions or add a lump sum at any time (up to a child’s Personal ISA allowance)
- transfers from Child Trust Funds or other Junior ISA providers permitted by using our transfer forms
- you can stop and restart your monthly contributions at any time
- all funds invested for at least 24 months can be transferred into another Junior ISA (or withdrawn if the child is 18 or over) with no penalty
Low Starting Premium
- save for a child’s future from just £30 a month, with flexibility to add occasional lump sums
- or open the plan with a one-off investment of at least £1,500
- annual Junior ISA limit set at £9,000 from tax year 2020/21
Metfriendly Escalator and low start premiums
- Metfriendly Escalator allows you to build up your savings, with contributions automatically increasing each year, until you tell us to stop
- the increase will take place each April starting in the following calendar year. For example, if you start your plan at £30 per month from September, and set the escalator at £20, your monthly contributions will automatically increase to £50 per month the next April, and by £20 each year afterwards
- you can still vary, add a lump sum, stop or restart your monthly contributions at any time